In recent years, the new technologies and discoveries on manufacturing materials have encouraged researchers to investigate the appearance of material properties that are not naturally available. Materials featuring a specific stiffness, or structures that combine non-structural and structural functions are applied in the aerospace, electronics and medical industry fields. Particularly, structures designed for dynamic actuation with reduced vibration response are the focus of this work. The bi-material and multifunctional concepts are considered for the design of a controlled piezoelectric actuator with vibration suppression by means of the topology optimization method (TOM). The bi-material piezoelectric actuator (BPEA) has its metallic host layer designed by the TOM, which defines the structural function, and the electric function is given by two piezo-ceramic layers that act as a sensor and an actuator coupled with a constant gain active velocity feedback control (AVFC). The AVFC, provided by the piezoelectric layers, affects the structural damping of the system through the velocity state variables readings in time domain. The dynamic equation analyzed throughout the optimization procedure is fully elaborated and implemented. The dynamic response for the rectangular four-noded FE analysis is obtained by the Newmark’s time-integration method, which is applied to the physical and the adjoint systems, given that the adjoint formulation is needed for the sensitivity analysis. A gradient-based optimization method is applied to minimize the displacement energy output measured at a predefined degree-of-freedom of the BPEA when a transient mechanical load is applied. Results are obtained for different control gain values to evaluate their influence on the final topology.